Title
Resolution to Accept Grant Funds from the Michigan Department of Environment, Great Lakes, and Energy and Appropriate to the Fleet Fund to reimburse the purchase of an Electric Refuse Truck ($465,602). (8 Votes Required)
Memorandum
Attached for your review and consideration is a resolution to accept and appropriate grant funding from the Michigan Department of Environment, Great Lakes, and Energy (EGLE) to support heavy fleet electrification through the purchase of an Electric Refuse Truck. The City of Ann Arbor has had a Green Fleets policy for over 2 decades, to continually lessen the environmental impact of the City fleet. Recently, with updates to this policy and the adoption of A2ZERO, increased focus has been placed on the electrification of City fleet. Significant progress has been made in the electrification of the light fleet, and the electrification of refuse trucks represent the first major electrification step of the heavy fleet.
The grant received by the City of Ann Arbor is part of the Fuel Transformation Program through EGLE. The grant partially funds the replacement of certain diesel equipment to reduce harmful emissions these vehicles create. This funding covers 70% of the total project cost and comes from the Volkswagen settlement from violations of the Clean Air Act.
This is the second of two grants that were pursued to support heavy fleet electrification in 2021.These grants were secured by the Office of Sustainability and Innovations, in partnership with Facilities and Public Works. Proceeds from this grant will be used towards the purchase of a second all electric refuse truck, which action is also on this evening’s Council agenda.
Budget/Fiscal Impact: These funds will be used to reimburse the Fleet Fund for the project costs associated with the purchase of a second all electric Peterbilt 520 EV refuse truck in FY22.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Manager
Reviewed by: Matthew Kulhanek, Fleet & Facilities Manager
Reviewed by: Molly Maciejewski, Public Works Manager
Approved by: Milton Dohoney, Jr., City Administrator
Body
Whereas, Ann Arbor City Council unanimously adopted the A2ZERO plan in June 2020, which calls for 90% fleet electrification by 2025;
Whereas, City staff continues to pursue fleet electrification through the purchase of heavy equipment as opportunities become available; and
Whereas, City staff applied for and successfully won a Fuel Transformation Grant from the Michigan Department of Environment, Great Lakes, and Energy to support 70% of the costs to purchase an electric refuse truck;
RESOLVED, That City Council accepts this grant from the Michigan Department of Environment, Great Lakes, and Energy for the purpose of purchasing an electric refuse truck;
RESOLVED, That City Council appropriates the revenue and expenditure from this grant in the Major Grants Fund in the amount of $465,602 for a portion of the costs associated with replacing a diesel refuse truck with a fully electric alternative;
RESOLVED, That City Council appropriate a revenue transfer in the Fleet Fund from the Major Grants Fund in the amount of $465,602 and appropriate an expenditure amount in the Fleet Fund in the amount of $465,602 for the cost of the vehicles;
RESOLVED, That all amounts herein are without regard to fiscal year; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.